During a recent city council meeting, members engaged in a robust discussion regarding the proposed affordable housing ordinance aimed at addressing the pressing housing shortage in Costa Mesa. The ordinance, which relies on market-rate developers to contribute to affordable housing, sparked a debate on the appropriate thresholds and fees that would encourage development while ensuring community needs are met.

Councilmember Harlan expressed support for the motion, emphasizing the need for practical solutions to increase housing production. He noted that while the council had previously approached the issue with unease, a compromise was reached that could potentially lead to more housing being built. Harlan highlighted the importance of creating incentives for developers rather than imposing excessive regulations that could deter them from investing in the area.

The discussion also touched on the proposed in-lieu fee of $10 per square foot, which some council members argued was too low and might encourage developers to opt for paying the fee instead of building affordable units on-site. Councilmember Chavez suggested a friendly amendment to lower the unit threshold from 50 to 30, arguing that this change would allow for a broader range of projects to qualify for affordable housing contributions. However, other members cautioned that a lower threshold could lead to developers building just below the limit, thereby limiting the overall housing supply.

Councilmember Marr raised concerns about the potential impact of the ordinance on the community's housing landscape, questioning whether the proposed changes would genuinely lead to an increase in affordable units or simply provide a financial incentive for developers to pay fees without contributing to on-site housing.

The city manager responded to inquiries about the level of interest from developers, asserting that there is significant engagement in Costa Mesa, particularly following recent policy changes aimed at facilitating housing development. The manager noted that the city is positioned uniquely within Orange County, with opportunities for growth that could attract further investment.

Ultimately, the council voted on the motion, which included a two-year review of the ordinance and a commitment to revisit the in-lieu fee structure based on future housing production outcomes. The decision marks a significant step for Costa Mesa as it seeks to balance the needs of developers with the urgent demand for affordable housing in the community.